WASHINGTON, D.C. — The Internal Revenue Service (IRS) is ramping up its efforts to provide taxpayers with clearer information this filing season. The agency recently announced revisions to its frequently asked questions (FAQs) for Form 1099-K, used for reporting payment card and third-party network transactions.
The update, outlined in Fact Sheet 2024-03, provides more general information for taxpayers. It covers common situations and offers greater clarity for industries and organizations that need to send Forms 1099-K. This new FAQ section supplements recent updates on the IRS.gov page and other communication resources.
The IRS has been listening to feedback from taxpayers, tax professionals, and payment processors. To reduce confusion, the agency announced on November 21, 2023, in Notice 2023-74 that it would delay the new $600 Form 1099-K reporting threshold for third-party settlement organizations. Originally, this change was set to take effect for the calendar year 2023.
As the IRS continues to work on implementing the new law, it’s treating 2023 as an additional transition year. Therefore, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023. However, taxpayers may still receive a form for amounts less than the required reporting amount.
The revised FAQs contain substantial changes within each section, including General Information, What to Do If You Receive a Form 1099-K, Common Situations, Third Party Filers of Form 1099-K, and Should My Organization Be Preparing, Filing, and Furnishing Form 1099-K?
The IRS aims to support taxpayers by providing clearer guidance. More information about taxpayer reliance on guidance published in the Internal Revenue Bulletin and FAQs is available through the IRS.
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